The state of the economy and what president obama won't say

Amazingly, President Obama tells us the economy is showing signs of recovery because we are losing jobs at half the rate than when he first took office. Somehow this should be interpreted as good news and we should all rejoice as the shepherds did upon receiving the message from the host of angels of the impending birth of the baby Jesus.

One such indicator pointed out by the president, is the rise of the stock market in recent days. On August 7^th, CNN reported The Dow gaining 114 points, S&P 500 index rising 13 points and The Nasdaq up 27 points, which is a nine month high. Does this really deserve a fat presidential pat on the back? I think not. Not when we really examine the facts, something the president and his slight of hand stage crew led by Rahm Emanuel are betting most U.S. citizens will not do.

Since this economic downturn, (a depression to millions of U.S. citizens) companies have been closing doors, furloughing workers, laying off massive amounts of employees, not replacing machines that break down and cutting back in general to save money. The long term effect shows on the books as each company making a profit. Basically, showing a profit from the demise of the workforce. Not really a profit in the traditional sense and raising the stock market numbers. A house built on sand. False hope.

Private business alone has shown that its incapable of truly supporting an economy since the basic premise of corporations today are laid on a foundation of greed, of tapping out as much sap from the population to feed the upper most ten percent. So, here comes the government to the rescue, with a trillion dollars to bail out private business. Our dollars, and yet there is talk on the wire of another rescue/bailout. An economy cannot rise with an out of work population, which is in essence what the president is attempting to convince us he can do.

So, how does this place us within the scale of the global economy? Many in the Russian population feel the U.S. is responsible for their poor economic situation. I’m not sure if the Russians bought into the mortgage loan bundles being sold all over the world until the real estate bubble burst here, (Russian politicians refusing to shake president Obama’s hand) which would have been their poor choice of investment. At any rate, with its citizens unemployed there are less U.S. dollars being spent. And spending is the backbone of the U.S. economy. So how can Mr. Obama really bring about a recovery with an unemployed population?

Which brings us to China. The Chinese economy is an export economy, and relies heavily on the buying power of the U.S.(their population cannot afford to buy its products.) Since the U.S. has lost so many jobs (Western Europe and Canada included) it’s citizens are not spending and killing the Chinese economy. China’s government is injecting massive amounts of cash into its banks and essentially propping up it’s economy and the affect is China is sky rocketing at the stock markets. But, can China sustain upward stock market mobility? What happens when their export bubble burst? A tsunami?